Middle Eastern service provider Abu Dhabi Aviation has acquired Etihad Engineering as well as Advanced Military MRO Centre, plus a 50% stake in Global Aerospace Logistics, to establish an operation with broad range of capabilities.
It is taking the stakes from Abu Dhabi investment holding ADQ which, in turn, will acquire shares in Abu Dhabi Aviation.
“The acquisition creates a competitively-positioned, vertically-integrated, aviation group of companies with strong capabilities in MRO, logistics, supply chain and advanced engineering,” the company says.
Abu Dhabi Aviation says the companies were transferred to it, following regulatory clearance, in consideration for the issue of a convertible instrument for around Dhs4 billion ($1.1 billion).
Etihad Engineering offers MRO services to Etihad and several other carriers, while the other two entities provide MRO across various aircraft types.
Abu Dhabi Aviation – which has a fleet of over 60 aircraft, primarily helicopters, and is active in several aerospace sectors – says the transaction results in a “new local champion” with over 9,500 personnel and a “comprehensive” offering.
“By extending [our] value chain into the MRO segment, we have greater scale for growth,” says chair Nader Ahmed Mohamed Alhammadi.
